1. PROCUREMENT PROCEDURES

2. Procurement Procurement is the process of acquiring goods, supplies and services. It includes: Equipment, spare parts & supplies for program activities Equipment, office furniture & supplies for project offices Drugs and medicines Consulting services by individuals or organizations

3. Best Practices in Procurement To best complete procurement procedures: 1. Conduct annual procurement planning that includes both office and program equipment, supplies and services 2. Link procurement planning to budget and workplanning processes 3. Follow established written procurement procedures 4. Provide for open competition to the extent possible 5. Obtain quotations, review quotations against established criteria, use evaluation committees and justify vendor selection 6. Document the procurement process 7. Keep an inventory of all equipment purchased and update it regularly, noting condition and location of items

4. Documentation Should tell the ‘procurement story’ without additional verbal explanation ‘Procurement story’ should include quotations obtained, analysis, evaluation committee outcomes, and justification of vendor selection based on clear criteria Depending on organizational policy, a checklist should be developed to ensure the organization is regularly keeping standard documentation

5. Sample Procurement File Checklist Signed Purchase Request Form Request for Quotations or Request for Proposals (including memo / newspaper postings) Quotations or Proposals Received (minimum of 3) Quotations/Bids Analysis (should show quantitative / qualitative analysis of quotations or proposals and advantage(s) of winning vendor) Memo to the File (in conjunction with Bids Analysis should explain in written form background, competitive process and justification for vendor selection)

6. Signed Purchase Order or Contract Confirmation of receipt of item/Goods Received Notes/Good Delivery Notes – Bordereau d’expédition Vendor’s Invoice (stamped paid) Relevant correspondence, memos, records of conversations collected throughout the procurement process

7. The Big Picture  Avoid purchasing unnecessary items  Establish and maintain control procedures  Seek open competition to obtain the best value for money  Avoid conflict of interest !!!  Ask the competent authority if you are unsure

8. What is a Sole Source ? Sole source = No bid When one and only one source that possesses a unique product having singular characteristics or performance capability to provide the service needed. A sole source implies that there is only one person or company that can provide the contractual services needed, and any attempt to obtain bids would only result in one person or company being available to meet the need.

9. Sole Source Justifications are limited to the following reasons:  Only known source for acceptable supplies or services. No other type of supplies or services will suffice or are compatible with required needs. No other source can provide supplies or services within the requested deadline.  Unique prior experience, expertise, professional stature, or key personnel.  Unique capabilities.  Supplies or services can be most reasonably and quickly provided.

10. Procurement cycle (source: RPPA)

12. Principles governing good procurement Transparency; is about the application of procedures in a manner which is open, clear, easily accessible and predictable. The test is that bidders must see the procurement as being transparent

13. Competition; is about providing the bidders with equal opportunity and treatment in bidding for procurement contracts. Competition should be seen to be open and fair in order to be sustainable and to achieve economy.

14. Economy; procurement should be about giving the procuring entity the best value for money, with value being defined as more than just price, but quality assessment as well. More often lowest initial price may not equate to lowest cost over the operating life of the item procured. But the basic point is the same: the ultimate purpose of sound procurement is to obtain maximum value for money

15. Efficiency; being simple and timely, practical and meeting the available budget of the Procuring Entity to achieve positive results devoid of any unnecessary delays in the program implementation. Efficiency implies being practical in terms of compatibility with the administrative resources and professional capabilities of the procuring entity and its procurement personnel

16. Fairness; is about being impartial, consistent and reliable. Potential bidders should have a level playing field which directly expands their options and opportunities thereby encouraging them to compete

17. Accountability; is about bestowing a sense of responsibility to its users, making them accountable for their actions and/or inactions by enforcing established rules and procedures. Good procurement holds its practitioners responsible for enforcing and obeying the rules. It makes them subject to challenge and to sanction, if appropriate, for neglecting or bending those rules. It is a process that supports the credibility of the procuring entity by serving as a deterrent to collusion and corrupt practices while serving as an inducement for individual and institutional probity

18. More information see:  Law on Public Procurement no. 12/2007 of 29/03/2007  ministerial order no. 001/08/10/MIN of 16/01/2008 establishing the procurement regulations and standard bidding documents.  Law on Public Procurement no. 12/2007 of 29/03/2007

19. Avoid unnecessary and frequent emergencies Purchase the thing at the right time and at the best price